The New York State Attorney General Letitia James has filed a lawsuit against Valve, accusing the company of “illegally promoting gambling among children and teenagers” through lootbox mechanics in its popular video games. Among the titles highlighted by regulators are Counter-Strike 2, Team Fortress 2 and Dota 2.
The lawsuit was filed following an investigation by the Office of the Attorney General, which concluded that Valve’s games “facilitate gambling by enticing users to pay for the chance to obtain a rare virtual item with significant market value.” According to the filing, this system poses risks primarily to minors, who may develop gambling-like behavior through these game mechanics.
In the lawsuit, James demands that Valve cease promoting gambling features, return all illegally obtained profits, and pay fines for violating New York State laws.
Pressure is also mounting at the European Union level. In October 2025, the Internal Market and Consumer Protection Committee of the European Parliament adopted a report recommending a ban on lootboxes for users under the age of 16.
The New York lawsuit may set an important precedent: if the court rules Valve’s practices unlawful, it could significantly impact the entire lootbox industry and force major companies to reconsider their monetization strategies.
However, Valve has not yet issued any response to the situation.
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